What is an irrevocable trust?

An irrevocable trust is a type of trust in which the grantor (the person creating the trust) cannot make changes to it after it has been created. In Virginia, an irrevocable trust is an important tool used in Elder Law to protect assets and provide for the future care of a senior. A trust is a legal document which creates a legal relationship between the grantor, the trustee (an individual or entity, such as a bank or lawyer, who holds and manages the trust accounts), and the beneficiaries (those who receive the benefits of the trust). The grantor of an irrevocable trust places assets into the trust, which can include a wide variety of items such as cash, stocks, real estate, and jewelry. The trustee then holds and manages these assets in trust for the benefit of the named beneficiaries. The primary benefit of an irrevocable trust is that the assets in the trust are protected from creditors, lawsuits, and other financial liabilities. Additionally, the assets are not subject to estate taxes upon the death of the grantor. While the grantor cannot make any changes to the irrevocable trust, the trustee can make certain changes, such as changing investment strategies or replacing trust beneficiaries. Though an irrevocable trust can be beneficial, it is important to ensure that the trust document is written properly and all available options are explored. Working with a knowledgeable Elder Law attorney in Virginia is recommended to ensure that the trust is properly created and to receive the full benefit of the trust.

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What is an irrevocable trust?

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